Increase in Life Sales to Younger People

By Andrew Rickard | July 16 2015 01:02PM

In the United States there was a 2% increase in life insurance sales last month. While previous months have seen more activity in older age groups, applications for those between the ages of 0 to 44 were up by almost 5% during the second quarter of 2015.

photo_web_1036According to the Medical Information Bureau (MIB) Life Index, which measures application activity for individually underwritten life insurance in the US, the demand for life insurance increased by 2% across all age groups in June, year over year. Numbers have been up for 2015 as a whole, with year-to-date (YTD) life insurance application activity up by 2.1% compared to the same period in 2014. The MIB points out that life insurance applications for those between the ages of 0 and 44 outpaced all other age groups in the second quarter, up by 4.7%. Applications for those aged 45 to 59 were flat at 0.2%, while those for people over age 60 were up by 1% in the quarter.

While YTD applications for those aged 45 to 59 increased by just 0.6%, activity for both the 0 to 44 and over 60 demographics increased by 2.7% and 2.5% respectively; "If this trend sustains, growth in younger age life insurance activity could surpass older age applicants in 2015 — a welcomed hand-off for the industry," says the MIB.